Rs.1.41tr development budget finalized for 2020-21 fiscal year

The total development outlay of about Rs1.41 trillion has been finalized by the Annual Plan Coordination Committee (APCC). The aim is to achieve an economic growth rate of around 2.3% next fiscal year 2020-21.

Presided over by the Deputy Chairman Planning Commission Jahanzeb Khan, the APCC meeting approved a federal public sector development programme worth Rs630 billion. For next year, the four provinces would have cumulative development plans of Rs783bn.

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But the main PSDP would have an allocation of Rs536bn. For special areas and programs which includes Azad Kashmir, Gilgit-Baltistan, security development, resettlement of temporarily displaced persons (TDPs), mainstreaming of the tribal region into Khyber Pakhtunkhwa.

Via a video link, most of the participants attended the meeting. In the meeting, the participants were informed that before the COVID-19 pandemic, the exchange rate stability and overall fiscal performance was satisfactory barring tax revenues, reserves were getting higher, inflation started deceleration after peaking in January, remittances were improving, industrial output was surging and IMF target was fully met. It was expected the economic growth would continue to rise over 3%, however with the COVID-19 pandemic the growth came out negative 0.4%.

Government faced immense pressure as exports reduced in April 2020 and imports fell. Inflation increased. So the aim of PSDP 2020-21 is to focus attention on completing the current projects, coronavirus 19 responsive development programme, increase funds for the social sector in comparison to the infrastructure and funding of only approved projects as per provision of Public Finance Management Act 2019.

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